OpenAI negotiating data center deal with Effingham IDA; discussions include revenue-sharing and local job creation
The Effingham County Industrial Development Authority approved an incentive package on July 21 for a proposed OpenAI data center near Rincon, positioned to become one of the region's largest economic development investments since Hyundai Motor Group Metaplant America.
OpenAI has pledged a $20 billion capital investment to construct the facility in the Savannah Gateway Industrial Hub and create 1,000 full-time positions. The incentive package includes a 50% property tax abatement for 15 years, locked into the county's 2026 millage rate of 32.057. The estimated value of the 15-year abatement is $869.8 million. The abatement structure ensures the county and school system receive more tax revenue than they would without it—a key reason for their support. OpenAI is expected to become the largest taxpayer in Effingham County's history.
The project has generated resident opposition over environmental concerns, rising energy costs, and questions about whether incentives outweigh promised benefits. OpenAI says it will cover all power usage costs. Under the Memorandum of Understanding, the company must submit annual reports on development and economic impact; the ECIDA will retain an independent third party to verify compliance. Minimum benchmarks include the $20 billion investment and an initial 400 full-time jobs, plus thousands of construction positions. Full tax revenue will begin when the campus's final phase completes in 2031.
OpenAI first approached Georgia Power and site developer The Broe Group in October 2025. The 1,440-acre campus will include four buildings totaling 720,000 square feet on property previously controlled by The Broe Group. The existing park also hosts Aertssen Logistics, DHL, and Knight Transportation.
The fully built facility is projected to require up to 3.2 gigawatts of power and approximately 30,000 gallons of water daily. OpenAI plans a closed-loop water system that recirculates water rather than continuously withdrawing and discharging large volumes. Phased development is planned between 2028 and 2032, with the facility designed to reduce grid consumption by up to 1 gigawatt during periods of high demand or stress.
The campus—called Project Camellia—will house computing hardware, networking equipment, and electrical, mechanical, and cooling systems for both AI training and inference. Training develops and improves AI models; inference powers products like ChatGPT, Codex, and the OpenAI API. The company will initially employ at least 400 people on-site, scaling to 1,000 positions including site leadership and operations.
The Effingham County School District is projected to receive $32 million from the project, funded through property and sales tax revenue. The district anticipates $2.75 million in property tax revenue in 2027, growing to $3.4 million by 2029 and $10.2 million in sales tax in 2031, with $32 million in property tax by 2031. The average teacher salary including benefits and compensation is $108,671. District officials plan to lower the school millage rate and invest in teacher and staff salary increases, as well as technology, classroom upgrades, school buses, and safety enhancements. OpenAI has also committed to expanding artificial intelligence, logistics, and business education pathways through work-based learning, apprenticeships, and advisory roles with the district's STEM and CTAE programs.